Question

SOXA: Key Provisions - 101: Establishment of PCAOB

A) Section 101 of the Sarbanes-Oxley Act

B) Key regulations for non-profit organizations

C) Guidelines for environmental accounting

D) Establishing a federal auditing agency

Answer 1

The Sarbanes-Oxley Act (SOXA) was enacted in 2002 to increase confidence in financial information provided by public corporations and protect investors from accounting fraud. Option C

Step-by-step explanation:

Sarbanes-Oxley Act:

The Sarbanes-Oxley Act (SOXA) was enacted in 2002 in response to major accounting scandals involving companies like Enron and WorldCom. It was designed to increase confidence in financial information provided by public corporations and protect investors from accounting fraud.

One key provision of the act is the establishment of the Public Company Accounting Oversight Board (PCAOB), which is responsible for overseeing audits of public companies.

Example:

Under SOXA, the PCAOB has the authority to set auditing, quality control, and independence standards for registered public accounting firms. It also conducts inspections and investigations to ensure compliance with these standards, enhancing the reliability of financial statements. Option C